Market Update | 3 November

This week, the LGC market saw a rebound following several weeks of decline while the PRC market experienced higher liquidity and a declining spot price. The VEEC market traded at a stable rate, while the ACCUs saw moderate volumes in HIR units. This week’s wider news is recapped below: 

• PDRS Rule Change Consultation 

• Quarterly ESIA-DEECA-ESC Meeting 

PDRS Rule Change Consultation 

On Wednesday, the NSW Government held a forum for the second PDRS Rule Change consultation. The session clarified many elements of the proposed changes for both small and large energy users. The key summary items are below: 

 

Small Energy Users

• • Peak Reduction Certificates (PRCs) are awarded for available capacity to reduce demand, rather than actual dispatch. This remains constant across all calculation methods. 
  • Pool pumps will have lifted viability, with a 6-star pump increasing from 90 PRCs to 161 PRCs. At the current spot price of $1.30, this is an increase from $117.00 to $209.00, with Energy Saving Certificate revenue in addition to this. 
  • Air conditioning units will need to be internet-connectable, and able to be controlled by a demand response aggregator from the rule implementation on 01 April 2024. 
  • PRCs for batteries will be available for units with an available capacity of 2-28kWh.

 

Large Energy Users – C&I Demand Response 

• • The Wholesale Annual Response Mechanism (WARM) is proposed to be available for both new and existing assets. 
  • The asset will need to be enrolled into the Wholesale Demand Response Mechanism (WDRM).
  • PRCs will be created annually by submitting the single highest volume and longest duration dispatch within the period between 01 November to 31 March, between the hours of 2:30pm-8:30pm. 
  • The PRCs will be calculated based on data from the longest period of dispatch extrapolated over the summer months. 

Quarterly ESIA-DEECA-ESC Meeting 

Each quarter the Energy Savings Industry Association have a meeting with the Essential Services Commission (Victoria) and the Department of Energy, Environment and Climate Action (Victoria). The primary summary of the meeting results is below:

• • The Large Energy User exemption framework may see further delays after it was re-forecasted to be released at the end of this year. The consultation and potential changes to the framework have an impact on the annual VEET targets through to 2025. No official detail surrounding the consultation delay has been released by the Essential Services Commission. 
  • The ESC is aware of significant delays in VEEC registration, VEU accreditation and product approvals. This has been attributed to high demand.